Problem $5(17$ points$)$

Basketballs R Us uses a job$-$order costing system with a plantwide predetermined overhead rate. based on machine$-$hours. At the beginning of the year, the company made the following estimates;

Machine$-$hours required to support estimated production

$265\mathrm{.}000$

Fixed manufacturing overhead cost

$ $726,000$

$ $4\mathrm{.}36$

Variable manufacturing overhead cost per machine$-$hour

Required:

$1.$ Calculate the pre$-$determined overhead rate.

$2.$ During the year, Job $408$ was started and completed. The following information was available with respect to this job:

Direct materials

Direct labor cost

Machine$-$hours used

$ $355$

$ $219\mathrm{.}21$

$38$

Compute the total manufacturing cost assigned to Job $408.$

$3.$ If Basketballs R Us made $60$ basketballs in Job $408,$ what is the cost per basketball for this job? $($round to the nearest cent, or $2$ decimal places$)$

$4.$ If Basketballs R Us uses a markup percentage of $290\%$ for all of their orders,

a$.$ What is their markup per basketball?

b$.$ What would be the selling price per basketball?